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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: neolib who wrote (91039)10/1/2007 9:26:40 PM
From: Elroy JetsonRead Replies (1) of 306849
 
Your reasoning sounds like that of a technician or engineer.

Imagine, as an example, the limitations of saving for your children's education by taking your surplus each month and purchasing farm tools, bushels of wheat, and drums of gasoline.

When you need to trade these in exchange for the college tuition, none of these items will be valuable - the gasoline filled with gum and useless, the bushels of wheat rotted, and the farm tools rusted.

Without money, of stable value, you will discover much of the economy grinds to a halt, and everyone becomes poorer. Lenin tried running Russia without money and found that farmers were very disinclined to trade food for the the services produced by city folk like technicians and engineers.

Yet you may well get to see how well your ideas work now as Americans lose faith in their currency and bid tangible goods up to bubble levels in a "flight into real goods".

The results are not pretty. Its like the 1920s in Germany where their economy was destroyed with logical Teutonic precision of money which lost significant value on daily basis. It was still a medium of exchange - a wheelbarrow of money for a loaf of bread - money simply lost its utility as a means of storing value.
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